AcadeMedia’s interim report July 2017 – September 2017
First quarter (July 2017 – September 2017)
- Net sales increased by 9.4 percent to SEK 2,037 million (1,862).
- Operating profit (EBIT) increased by 17.6 percent to SEK 80 million (68). Adjusted for items affecting comparability, operating profit was SEK 82 million (69).
- Net profit for the period was SEK 51 million (41).
- Cash flow from operating activities amounted to SEK 142 million (131).
- The average number of children and students in preschool, compulsory schools and upper secondary schools during the first quarter was 68,098 (65,143), representing an increase of 4.5 percent.
- Earnings per share amounted to SEK 0.54 (0.44) before dilution and 0.54 (0.44) after dilution.
- AcadeMedia announced the acquisition of Vindora Holding for SEK 546 million. The acquisition will be partly financed through a fully guaranteed rights issue of approximately SEK 400 million.
Significant events after the end of the reporting period
After the end of the reporting period the Swedish competition authority has approved the acquisition of Vindora. Closing is planned for November 1, 2017.
The complete report will be made available at https://corporate.academedia.se/en/financials/reports-presentations/
Comments from CEO Marcus Strömberg
The beginning of the fall term is an exciting time at AcadeMedia. This is when we welcome all new and existing students to our schools. This year the number of children and students in our schools has increased with 4.5 percent, which gives us a stable volume for the year to come. The growth was generated from a stable increase in the number of students in our existing entities and new upper secondary schools in Sweden. In addition, the acquisition of Stepke in the last quarter of 2016/17 boosted the volumes in the international preschool segment.
Economic development in the first quarter
The first quarter of the finanancial year developed positively with a volume growth of 4.5 percent and a net sales increase of 9.4 percent. Adjusted operating profit increased by almost 19 percent and amounted to SEK 82 million (69). The increase was mainly derived from the upper secondary schools segment and the adult education segment. The first quarter of the financial year however accounts for a small proportion of the annual profit.
Seven new upper secondary schools
As previously communicated AcadeMedia has started seven new upper secondary schools this fall. The schools are located in larger and smaller towns and within several brands. The cities in which we have decided to start are Stockholm (ProCivitas, IT-Gymnasiet, Sjölins Gymnasium and NTI Vetenskapsgymnasiet), Borlänge (Rytmus), Linköping (Drottning Blankas Gymnasieskola, LBS Kreativa Gymnasiet) and Växjö (LBS Kreativa Gymnaiset). These seven schools have admitted a total of some 370 first year students which brings the total number of first year students to an all-time-high of 10 000!
The upper secondary school segment has passed the low inflexion point of the demographic curve and going forward the number of students in this age group will be increasing year by year.
At the beginning of September AcadeMedia announced its intention to acquire Vindora. Vindora is a leading player in apprenticeship, vocational education and introductory programs in upper secondary schools. The business comprises a total of 33 schools under the Praktiska brand and three schools under the Hagströmska brand. In addition, Vindora offers adult education under the Movant brand.
Through the acquisition of Vindora, AcadeMedia will become a stronger player in the field of vocational training focusing on achieving a shorter time-span between education and employment, which is extremely important both for the individual and for Sweden as a country. Praktiska has also taken on one of Sweden’s biggest challenges through their high engagement in the introductory programs in upper secondary school and apprenticeship programs which target people at risk of lifelong exclusion. We are convinced that what Vindora does, combined with our structure and our quality assurance system, provides both a great opportunity for Sweden and for AcadeMedia as a company supporting society.
We expect to close the acquisition during the second quarter of our financial year.
Financial stability supports growth
The acquisition of Vindora will partially be funded through a rights issue of around SEK 400 million. Part of the funds will also be used to support AcadeMedias international expansion. Thereby we will strengthen AcadeMedias balance sheet and be well positioned for growth going forward.
Looking forward we feel we have a very exciting year ahead. In addition to reinforcing and developing our existing business, we have a large number of new establishments in Germany and the completion of the acquisition of Vindora will also require focussed efforts.
AcadeMedia continues to provide value to society as well as its shareholders.
President and CEO
AcadeMedia AB (publ)
Presentation of the report
A web-cast telephone conference will be held at 09:30 CET today, where CEO Marcus Strömberg and CFO Eola Änggård Runsten will present the report. You can follow the presentation and the conference on the following page: https://tv.streamfabriken.com/academedia-q1-2017
Or call one of the following numbers at least ten minutes before the start of the call:
- SE: + 46 8 5664 2691
- UK: + 44 20 3008 9801
- US: + 1 855 7532 235
The presentation material will be available before the conference begins on AcadeMedia web via https://corporate.academedia.se/en/financials/reports-presentations/
For more information, please contact:
Marcus Strömberg, CEO
Telephone: +46 8 794 4200
Eola Änggård Runsten, CFO
Telephone: +46 8 794 4240
Christian Hall, Investor Relations
Telephone: +46 763-111 242
AcadeMedia creates opportunities for people to develop. The 15,000 employees at our 600 preschools, compulsory schools, upper secondary schools and adult education centres share a common focus on quality and development. Our 160,000 children and students are provided with a high quality education, giving them the best conditions to attain both learning objectives and their full potential as individuals. AcadeMedia is Northern Europe´s largest education company, with locations/facilities/presence in Sweden, Norway and Germany. Our size gives us the capacity to be a robust, long term partner to the communities we serve. More information about AcadeMedia is available on www.academedia.se
This information is information that AcadeMedia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET on October 26, 2017.